Nine in 10 property industry leaders do not believe current government policy will deliver a net zero property sector by 2050.
In a report released today by the British Property Federation, in partnership with JLL, the industry body identifies the key challenges the sector faces as it decarbonises and provides a series of policy recommendations.
Policy and regulatory uncertainty and a lack of financial incentives to support the retrofitting of buildings are also hindering progress.
The report reveals that nine in 10 senior leaders surveyed by the BPF and JLL do not believe current government policy will deliver a net zero property sector by 2050.
Access to data is another major challenge, with property owners and occupiers referencing it as one of the top three challenges to decarbonising.
Respondents said a lack of quality data makes it difficult to calculate accurate operational carbon and set realistic carbon reduction targets.
To ensure the property sector can meet net zero targets, the BPF has set out several essential policies:
- Mandate the sharing of energy consumption data between property owners and occupiers of large commercial buildings, and set up a task force to explore the particular data challenges faced by owners of residential buildings.
- Confirm urgently the detail of planned changes to the Minimum Energy Efficiency Standards for both the domestic and non-domestic private rented sectors, and details of the proposed new performance-based energy rating system.
- Zero rate VAT on residential repairs and maintenance and reform capital allowances to incentivise investment to decarbonise.
- Move towards the mandatory installation of solar panels and/or green roofs on large residential, commercial and public buildings.
- Strengthen the criteria for a green tariff label.
- Allow real estate investment trusts to invest in off-site renewables.
- Align, and resource, the planning system to enable the net zero transition.
- Mandate the use and disclosure of life cycle assessments, and set embodied carbon reduction targets.
BPF chief executive Melanie Leech said: “The property sector is fully committed to decarbonisation but there are huge barriers and costs to overcome. We need clear long-term policies, regulation and incentives to support the industry’s efforts. We urge the government to adopt the policy recommendations in this report and to work with us to make sure we can deliver a net zero built environment by 2050.”
Guy Grainger, BPF president and global head of sustainability at JLL, added: “These pledges need to be turned into credible action. Without clear incentives and regulation from government we will continue to fall short of targets. The report highlights the insight we can garner when we collaborate, and this collaboration, along with government support is critical.”
The BPF launched its Net Zero Pledge, an industry-wide initiative to cut carbon emissions across the whole of the property sector, last year. The BPF pledge is designed to complement and support wider sector and industry net zero initiatives. Members can sign-up to the pledge on the BPF website.
This research was supported by Derwent London, Dorrington, Greengage Environmental, JLL, Maples Teesdale and TFT.
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